European inflation climbs to record 7.5%

LONDON — Inflation in Europe soared to another record, according to new EU figures released Friday, in a fresh sign that rising energy prices fueled by Russia’s war in Ukraine are squeezing consumers and adding pressure on the central bank to raise interest rates.

Consumer prices in the 19 countries that use the euro currency rose by an annual rate of 7.5% in March, according to the European Union statistics agency, Eurostat.

The latest reading smashed the high set just last month, when it hit 5.9%. It’s the fifth straight month that inflation in the eurozone has set a record, bringing it to the highest level since record-keeping for the euro began in 1997.

Rising consumer prices are a growing problem around the world, making it more difficult for people to afford everything from groceries to their utility bills. Spiking energy costs are the main factor driving inflation in Europe, with those prices surging 44.7% last month, up from 32% in February, Eurostat said.

Oil and gas prices had already been rising because of increasing demand from economies recovering from the depths of the COVID-19 pandemic. They jumped higher after Russia, a major oil and gas producer, invaded Ukraine, on fears that sanctions and export restrictions could crimp supplies.

It’s also getting more expensive to eat in Europe. Food costs, including alcohol and tobacco, rose 5%, compared with 4.2% in the prior month.

Prices also increased for goods like clothing, appliances, cars, computers and books, up 3.4% from the 3.1% set the month before, and for services, which were up 2.7% from 2.5%.